Aramco 'in talks' with Reliance Industries for 20pc stake
OIL AND GAS NEWS
State oil giant Saudi Aramco is in advanced talks with India's Reliance Industries Limited (RIL) to acquire a stake in its oil refining and chemicals business for an all-stock deal, reported Bloomberg citing people with knowledge of the matter.
Aramco is discussing the purchase of a roughly 20% stake in the Reliance unit for about $20 billion to $25 billion-worth of Aramco shares, the people said, asking not to be identified because the information is private.
Reliance, which is backed by Indian billionaire Mukesh Ambani, could reach an agreement with Aramco as soon as the coming weeks, the people said.
Shares in Reliance extended gains to as much as 2.6% in Mumbai after the Bloomberg News report.
A deal would forge closer ties between the world’s biggest oil exporter and one of the fastest-growing energy consumers.
It would seal more than two years of negotiations and mark Aramco’s first all-stock deal since its initial public offering in 2019.
Ambani confirmed talks about a deal with an implied stake valuation of $15 billion that same year. Discussions were delayed by the onset of the coronavirus pandemic and slump in oil pricesm, reported Bloomberg.
A deal would help Reliance lock in a steady supply of crude oil for its giant refineries and make the Indian company a shareholder in Aramco. Based on Aramco’s market valuation of about $1.9 trillion, a transaction would give Reliance a stake of around 1% in the world’s biggest energy company.
